Alliance resolves regulatory matters

SAN FRANCISCO (MarketWatch) - Alliance Capital Management Holding L.P. said on Friday that it would pay almost $1 million to resolve three unrelated regulatory issues.

The New York-based investment manager and mutual-fund firm
AC, -1.43%
said in a regulatory filing that it agreed to pay $450,000 to settle a Securities and Exchange Commission allegation that the company failed to provide complete disclosure of quarterly dividend distributions to shareholders of two Alliance closed-end funds.

Alliance said both the Alliance All-Market Advantage Fund
AMO, +0.00%
and The Spain Fund Inc.
SNF, +4.55%
have revised their dividend disclosures in response to the SEC's review.

In a second case, Alliance agreed to pay $350,000 to settle a National Association of Securities Dealers Inc. matter involving the securities trading of an unidentified research analyst in Alliance's Sanford C. Bernstein & Co. unit.

The NASD said its rules were violated when the analyst suspended coverage of certain securities and then sold personal holdings in those stocks. Claims involving the analyst have not been resolved, Alliance added.

Separately, Alliance agreed to pay $150,000 to resolve a New York Stock Exchange allegation that Sanford C. Bernstein violated NYSE rules by failing to properly identify certain short sale transactions as short sales in disclosures known as Electronic Blue Sheet submissions.

Alliance said it has recorded a $950,000 charge against third-quarter earnings to cover the agreements.

The company reported the settlements after the market close. In Friday's regular session, shares of Alliance Capital Management Holding gained 8 cents to $47.16.

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